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$250,000 You are considering two machines A B that can be used for the same purpose . Machine A costs will reduce costs by $
\$250,000 You are considering two machines A B that can be used for the same purpose . Machine A costs will reduce costs by $ 70,000 per year , needs networking capital of $ 20,000 at time zero which be released at the end of the project , has a 5 year straight line depreciable life and can be sold at the end of the project's life for $ 50,000 . Machine B costs $ 320,000 will reduce costs by the same $ 70,000 per year , has net working capital of $ 40,000 at time zero ( also released at the end of its life ) , has a ten year traight line depreciable life and can be sold at the end of its life for $ 60,000 . Assume hat the tax rate is 38 % and the discount rate is 10 % . what are the after tax salvage values for project a abd b at the end of their lives? dont include the annual operating cash flows in this cslculation, just the salvage value plus or minhs any tax benefit or liability
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